Prime Bank allows Tk 50 crundue interest waiver

Rare magnanimity towards a debtor

Staff Correspondent: Prime Bank has shown questionable rare magnanimity towards businessman debtor Mohammad Abul Bashar of Khatunganj, Chittagong city. His interest of Tk 50 crore has been waived. At the same time, the private bank has given the opportunity to pay in 19 installments in 9 years to collect the original Tk 58 crores.
However, the court sought an explanation from the managing director (MD) of the bank. At the same time, the court ordered the executive director of Bangladesh Bank Chittagong to investigate whether any circular of Bangladesh Bank has been violated in the interest waiver and whether the money of the cancellation loan has been smuggled – by the coordination of two joint directors and submit a report.

Chittagong Finance Court Judge Mujahidur Rahman gave this order on Monday. Assistant bench of the court Rezaul Karim confirmed this information.
According to court sources, Abul Bashar was granted a loan of Tk 58 crore in March 2014 from the Khatunganj branch of Prime Bank in the city. This loan facility is granted for the business of consumer goods including sugar and wheat at 16 percent interest. The loan was supposed to be repaid in 90 days. But he did not return any money. In this situation, in March 2016, the bank filed a case in the finance court to recover defaulted loans of Tk 73.68 crore.
Later, the bank authorities waived interest of more than Tk 49 crore and fixed Tk 58 crore as recoverable liability. On the other hand, the bank authority gives the opportunity to repay the principal amount in 19 installments of six months between 2024 and 2033 without any interest.
According to the court order, the defendant has not repaid the loan amount in spite of interest waivers on September 4, 2019, June 25, 2020 and May 16, 2022. Defendant Bashar is a willful defaulter as he has not repaid any money for 5 years after taking a loan of Tk 58 crores. It was not fair to grant him interest waiver benefits in a blanket manner. In this situation, there is a question about the justification of loan waiver in the said process.